CROSS MARKETING GROUP INC. Ticker：3675 (TSE Prime)
Cross Marketing Group Inc.
Presentation material for Investors
Copyright©Cross Marketing Group Inc. All rights Reserved .
CONTENTS
- FY6/2024 Q3 Financial Results Outline
- Topics
- Forecast & Shareholder Returns
- Company Overview
- Appendix
3
1 FY6/2024 Q3 Financial Results Outline
Executive Summary
4
Summary
１
- Q1-Q3revenue was 19.34 billion yen (down 2% YoY) and operating profit totaled 1.69 billion yen (down 22% YoY).
- After bottoming out in Q1, recovery continued in Q2 and Q3, and progress is in line with the full-year forecast.
Summary
2
- Digital Marketing: Revenue was up 13% due to recovery in media/promotion order unit prices.
- Research (Data Marketing/Insight): Revenue declined 9% in total mainly due to a lull in overseas demand, despite strong performance in Japan.
Summary
3
- Full-yearplan fiscal year ending in June 2024: Revenue of 26 billion yen, operating profit of 1.9 billion yen (no change)
- Q4 (April to June) outlook is favorable: Digital Marketing and research in Japan remain strong, with revenues also increasing for overseas research.
Financial Results Outline for Q1-3
5
Growth in Digital Marketing led to a turnaround in consolidated revenue
growth in Q3 (Jan.-Mar.),
Data Marketing bottomed out in Q2 and is on a recovery track.
FY2024/6 | ||||||||
Q1 | YoY | Q2 | YoY | Q3 | YoY | YoY | ||
Growth | Growth | Growth | Q1-Q3 | Growth | ||||
(JPY 100 Million) | (Jul.-Sep.) | (Oct.-Dec.) | (Jan.-Mar.) | |||||
Rate | Rate | Rate | Rate | |||||
Revenue | 56.3 | －8% | 68.9 | －0.2% | 68.3 | +3% | 193.4 | －2% |
Digital Marketing | 22.0 | －2% | 29.1 | ＋23% | 26.1 | ＋16% | 77.2 | ＋13% |
Business | ||||||||
Data Marketing | 19.6 | －15% | 20.7 | －25% | 24.9 | －12% | 65.2 | －17% |
Business | ||||||||
Insight Business | 14.7 | －6% | 19.1 | ＋7% | 17.2 | +10% | 51.0 | +4% |
Gross Profit | 20.2 | －22% | 29.2 | ＋3% | 28.2 | －1% | 77.6 | －6% |
(Gross Profit Margin) | (35.9%) | (－6.5pt) | (42.4%) | (+1.1pt) | (41.3%) | (－1.7pt) | (40.1%) | (－2.1pt) |
20.6 | +2% | 60.7 | －1% | |||||
SG&A | 20.4 | －2% | 19.7 | －3% | ||||
Operating Profit | －0.2 | － | 9.5 | ＋16% | 7.6 | －10% | 16.9 | －22% |
(Operating Profit | ||||||||
(-) | (-) | (13.8%) | (+1.9pt) | (11.1%) | (－1.6pt) | (8.7%) | (－2.3pt) | |
Margin) | ||||||||
Factors Behind Fluctuations in Operating Profit (YoY)
6
Decrease in gross profit due to lower revenue in Data Marketing was the main cause of
the fall in operating profit.
Despite new consolidations, SG&A was controlled to be similar to the previous fiscal year.
Operating profit: Down 4.8 / Down 22%
Operating | Data | ||||
Marketing | |||||
Profit | |||||
21.7 | －4.5 | Insight | Digital | SG&A, | Operating |
Marketing | Group-wide | Profit | |||
－0.3 | －0.5 | +0.5 | 16.9 | ||
Decrease in gross | Gross profit | Gross profit | SG&A almost on par | ||
profit due to lower sales | |||||
almost on par | almost on par | with the previous | |||
with the previous | with the previous | fiscal year | |||
fiscal year | fiscal year |
Change in gross profit | Change in SG&A |
Q1-Q3 | Q1-Q3 |
FY2023/6 | FY2024/6 |
Digital Marketing Business
Q1-Q3 revenue up 13%, segment profit up 26%
Full-scale recovery in media/promotion, IT solutions contributed with
improved profit.
7
Highlights
- Media and promotion revenue increased 23% in Q1-Q3. This was supported by a recovery in unit prices and the newly consolidated subsidiary Tokyo Gets.
YoY change in media/promotion unit prices FY2023/6: Q1 -10% Q2 -24% Q3 -22% Q4 -2% FY2024/6: Q1 +7% Q2 +54% Q3 +33%
- IT solutions contributed to increased segment profit with improvement in SG&A ratio (-2.6 points).
- Segment profit increased 26%. Segment profitability of 10% was secured in Q3 as in Q2.
(JPY 100 Million)
95
100
Revenue
77.8 | 77.2 | 75 | |||||
YoY | |||||||
80 | 68.5 | ＋13% | |||||
52.7 | 54.5 | ||||||
60 | 44.4 | 55 | |||||
Media | |||||||
and | |||||||
promotion | |||||||
40 | 35 | ||||||
Segment | |||||||
profit | |||||||
20 | 25.1 | 7.7 | 24.1 | 22.7 | 15 | ||
4.5 | 5.6 | YoY | |||||
IT solutions | +26% | ||||||
0 | -5 | ||||||
Q1-Q3 | Q1-Q3 | Q1-Q3 | |||||
FY2022/6 | FY2023/6 | FY2024/6 | |||||
Data Marketing Business
8
Q1-Q3revenue declined 17% and segment profit declined 23%
Although demand in Japan was strong, overseas demand has run its course.
(JPY 100 Million)
Highlights
• Revenue in Japan increased 4%. Demand for |
90
80
Revenue
78.9
online research remained strong. |
70
65.5 | 65.2 | YoY |
－17% |
Lowlights
- Overseas revenue declined 50%. Overseas, in the mainstay North American market, demand ran its course backed by the recovery from the COVID-19 pandemic.
Exchange rate impact
- The effect of the weak yen*1 boosted revenue by 110 million yen but had minimal impact on profit.
60
50
40
30
20
10
0
Segment
profit
22.423.2
-19% when
excluding exchange rate
17.8 | YoY |
－23% | |
-23% when
excluding exchange rate
*1 Compared to the actual exchange rate in Q3 of the fiscal year ended in June 2023
Q1-Q3 | Q1-Q3 | Q1-Q3 |
FY2022/6 | FY2023/6 | FY2024/6 |
Insight Business
9
Q1-Q3 revenue rose 4% and segment profit declined 15%
Although revenue increased in both Japan and overseas, profit decreased
due to a drop in the gross margin.
(JPY 100 Million)
Highlights
- Revenue in Japan increased 2% in total, while overseas revenue increased 8%. Strong performance continued in Indonesia.
Lowlights
- Segment gross profit margin declined by 1.9 points due to higher cost ratio in some areas (domestic medical field, overseas Singapore).
Exchange rate impact
- The effect of the weak yen*1 boosted revenue by 100 million yen but had minimal impact on profit.
*1 Compared to the actual exchange rate in Q3 of the fiscal year ended in June 2023
60
50
40
30
20
10
0
Revenue | 49.2 | 51.0 | YoY |
47.5 | ＋4% | ||
+2% when | |||
excluding exchange rate
Segment
profit
9.7 | 8.5 | 7.3 | YoY |
－15% | |||
-14% when | |||
excluding | |||
Q1-Q3 | Q1-Q3 | Q1-Q3 | exchange rate |
FY2022/6 | FY2023/6 | FY2024/6 | |
(Reference) Trends in Revenue for Overseas Subsidiaries
10
Total overseas revenue fell 34% mainly because demand ran its course.
Emerging markets continued to grow.
Highlights
- In Indonesia, orders were received from government affiliated energy, automotive, and consumer goods industries regardless of industry, and performance was strong.
- In India, we absorbed demand for surveys from consulting and research firms and performed well.
Lowlights
(JPY 100 Million)
42.4
Revenue
31.1
27.9 | YoY |
－34% |
-39% when excluding exchange rate
- Demand in North America ran its course, and revenue decreased 34% overall.
Exchange rate impact
- The effect of the weak yen*1 boosted revenue by 210 million yen (overseas total).
*1 Compared to the actual exchange rate in Q3 of the fiscal year ended in June 2023
Q1-Q3Q1-Q3
FY2022/6FY2023/6
Q1-Q3
FY2024/6
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Cross Marketing Group Inc. published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 06:07:18 UTC.
